14-15 September 2016

Lisbon, Portugal

#DeloitteSharedServices

Deloitte Shared Services, GBS & BPO Conference

Breakout 7: Transforming your Tax operating model

James Tooley and Demian de Souza, Deloitte

Agenda

• Introductions

• Tax GBS & SSC market trends

• Tax operating model components

• Centralising compliance – Case Study

• Q&A

Tax GBS & SSC market trends

Thomson Reuters / Shared Service Link Survey

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Indirecttax

Direct tax Statutoryfinancialreporting

No - it is mainly run in-country

It is mainly outsourced

No - but planning to move to

shared service in future

Yes - it sits mainly within shared

services

Do elements of your tax or financial reporting functionsit within shared services?

• Tax now a recognised component of GBS & SSC models

• Shift from “persuade” to “respond”

• Global tax process owners are increasingly prevalent

• Centralised Indirect Tax compliance increasingly business as usual

• Corporate Taxes a more challenging target

Tax GBS & SSC market trends

Thomson Reuters / Shared Service Link Survey

What are the advantages of moving tax into a GBS / shared service model?

0%

10%

20%

30%

40%

50%

60%

70%

80%

• Global process efficiencies and standardisation rank higher than cost reduction

Tax GBS & SSC market trends

Thomson Reuters / Shared Service Link Survey

What are the reasons not to move tax into a GBS / SSC structure?

• Local knowledge, relationships and language capabilities are seen as barriers

• Client business cases often also consider software requirements & costs

• Many of the barriers are not unique to ax.

0%

10%

20%

30%

40%

50%

60%

70%

80%

Process

Tax operating model

Layers Components

Scope and design• Global / local

• Standardized / bespoke

Delivery model• Centralized / de-centralised

• Single / integrated

In-house teams

• Tax / Finance

• On-shore / Near-shore / Off-shore

• Permanent / temporary

Service Providers• Insource / outsource

• Multiple / single

Systems• Off the shelf / bespoke

• Automated / manual

Information and data• Central records / local records

• Multi-source / central source

Organisation and

operations

• Stakeholders / delivery obligations

• Strategic / operational

Roles and

responsibilities

• Informal/formal

• Framework / ad hoc

Risk management• Transparency / no visibility

• Tax / Business

People

Technology

Knowledge

Case Study

Centralising Corporate Tax Compliance

Process

Transforming global compliance

People30%+

Client Goals• Simplify service delivery across geographically

dispersed offices

• Establish a single point of contact for global compliance services

• Standardise the tax compliance processes

• Safeguard quality and actively manage compliance risk

• Deliver cost savings of at least 30% to the business through the streamlined delivery of compliance services

• Partner with a single supplier who can provide a full suite of support services

Technology

Knowledge

Reliable processes

Processes

Process

• Process consistency is paramount

• 3 level co-source delivery model

• Centralising the process has surfaced pain points that need to be addressed e.g. data collection was very localized previously

• Styles of process improvement looks different across businesses but key steps are often common

Level of external supportMin Max

Bronze Silver Gold

The right mix of people

Processes

A multi-disciplinary team comprising:

• Tax technical specialists

• Data management resources

• IT and Excel skillsets

• Finance knowledge

• Project & Process managers and owners

• 3rd party providers where appropriate

Nationalities Skill sets

• Client established a Direct Tax Centre of Excellence in Budapest

• Delivery of global Corporate tax compliance from a single team

• Deployed tax process owners

• Aggressive push to recruit tax technical resources locally

• Prioritised language skills above pre-existing country tax experience

• Prepared to call on advisors to provide training and support

People

Technology trends

ProcessesTechnology• The availability of local country corporate tax compliance software was initially a

‘deal breaker’ for the client in determining which countries could be centralised into the tax CoE

• This proved not to be as critical as first thought

• There are very few ‘multi country’ Corporate Tax return solutions on the market. A high degree of localisation lends itself to ‘case by case’ Excel vs software decisions

Their technology priorities focus on:

− Deploying a consistent platform for task tracking, document management, knowledge sharing and management reporting (ONESOURCE Workflow Manager)

− Standardising the data collection exercise: aiming for global consistency

− Strengthening the relationship with a single global tax technology provider: helping shape their roadmap for CIT and Statutory Accounts technologies.

Knowledge is key to success

Processes

Periodical Newsletters

Strong Tax technical knowledge

Practical “problem solving” experience

Innovative Tax tools

Tax matrices and overviews

Updated tax Information per

country

Expertise

Co

mb

inatio

n

of

Su

pp

orte

d

by

Perio

dic

al

ou

tpu

t

Continuous professional training

Regular updates of knowledge databases

• Client uses Deloitte selectively to safeguard against risk and access to local knowledge

• Deployed focused training ahead of each compliance cycle

• The knowledge ‘bar’ in corporate income tax compliance is higher than that that of VAT compliance, but can still be overcome

Knowledge

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